What is true about a balance sheet?

A balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific moment in time. It outlines the company’s assets, liabilities, and equity, allowing stakeholders to assess the financial health and stability of the business. By presenting this information as of a particular date, a balance sheet helps in understanding what the company owns (assets) versus what it owes (liabilities) and the residual interest (equity) of the owners.

The other options do not accurately describe the purpose or content of a balance sheet. For instance, while profits are important, they are reflected on the income statement rather than the balance sheet. Additionally, the balance sheet includes all types of assets, not just market assets, and it does not provide detailed insights into operational costs, which are typically found in the income statement where revenues and expenses are recorded over a period. This clarification underscores the critical role of a balance sheet in the overall financial reporting of a business.